Your credit score is a very important financial number in your financial life. The higher your score, the higher your chances for qualifying for loans and credit cards at favorable terms which will save you more money. You know I have passion for finding ways to save you more money. If your credit score is not in the high 700, then you need to consider improving it. There are some quick steps you can take to see some quick bounce in your credit score, but it generally takes time to see meaningful improvement especially if your current score is in the low 400’s. I came across an interesting statistics on FICO website about credit score distribution in America:
FICO Score Range
Percentage of U.S. Consumers
800-850
20.7%
750-799
19%
700-749
17.1%
650-699
13.2%
600-649
10%
550-599
8.5%
500-549
6.8%
300-499
4.7%
If your credit score is below 650, it is considered not good. And this episode is for you.
Approximate Credit Rating
FICO Score Range
Exceptional
800 or above
Very Good
740-799
Good
670-739
Fair
580-669
Poor
Below 580
To start this process, please go to www.annualcreditreport.com. You can request a free copy of your credit report from each of three major credit reporting agencies – Equifax®, Experian®, and TransUnion® – once each year at AnnualCreditReport.com or call toll-free 1-877-322-8228.
After obtaining your credit report, you will be able to review all the information on it. If you have been a victim of ID theft, you can dispute charges, otherwise, if everything is right based on what you know, it is time to improve your credit score. Here are some tips that will help you to achieve a high credit score:
1. Make sure your credit reports are accurate
2. Fix late payment
3. Automate your bills payment
4. Pay off Debt and Reduce your credit utilization rate
5. Limit credit application & don’t close unused credit card
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